
Bitcoin dominance is decreasing, suggesting a potential shift towards altcoins.
Despite overall crypto market volatility, altcoins are showing signs of strength as Bitcoin's dominance weakens.
Analysts anticipate a possible altcoin season fueled by capital rotation away from Bitcoin.
Bitcoin dominance is starting to fadeโand the market is paying close attention. As BTC.D breaks below a key support level, analysts are eyeing a potential shift in momentum from Bitcoin to altcoins. For many, this could mark the beginning of a new altcoin season.
Excited? We are too! Dive in.
Market Cap Volatility Marks a Wild April
April kicked off with a total crypto market cap of $2.63 trillion. But the first half of the month brought major volatility.
Between April 5 and 7, the market dropped sharply by 9.8%, hitting a low of $2.31 trillion. It didnโt stay there longโbetween April 9 and 12, the market bounced back, climbing 11.71%. As of now, total market cap sits at $2.65 trillion, still 5.2% below this monthโs high.
Altcoins Follow the Trend
Altcoins mirrored Bitcoinโs moves, but with some promising signs.
The altcoin market started April at $991.26 billion, then dropped to $831.83 billion by April 7. From April 9 to 12, it rebounded 11.6%. Today, the altcoin market cap is around $958.43 billion – about 7.8% below the April peak.
Bitcoin Dominance Rejected at Resistance
Looking at the four-hour chart, Bitcoin dominance peaked at 63.98% on April 7, meeting strong resistance. It briefly broke above that level on April 16 but quickly fell back. BTC.D now sits at 63.83%.
If this trend continues, Bitcoin dominance could retest the monthly low of 63.16%โa move that could fuel even more optimism around altcoins.
Analysts Say Altcoins Set to Surge
Crypto analyst Crypto Rover shared on X that we may see sharp capital inflows into altcoins soon. Since April 16, the altcoin market has grown by 1.99%. Interestingly, when Bitcoin dropped from $84,936.62 to $84,479.38, the alt market climbed from $947.58 billion to $948.94 billion.
Top altcoins are already showing strength:
- Ethereum (ETH) up 0.85%
- XRP up 0.6%
- BNB up 0.7%
- Solana (SOL) up 2.7%
- Dogecoin (DOGE) up 2.1%
- Cardano (ADA) up 2.1%
As Bitcoin dominance shows signs of weakening and top altcoins begin to climb, traders are watching closely. If this momentum holds, we could be at the start of a strong altcoin cycle.
Momentum is building beneath the surface, and the market may be closer to a full altcoin breakout than it seems.
Never Miss a Beat in the Crypto World!
Stay ahead with breaking news, expert analysis, and real-time updates on the latest trends in Bitcoin, altcoins, DeFi, NFTs, and more.
FAQs
The Altcoin Season Index measures the performance of altcoins relative to Bitcoin. A low index value, such as 15, can indicate potential for an altcoin rally. โ
Lower Bitcoin dominance often leads to capital flowing into altcoins, boosting their prices as investors diversify from BTC to major altcoins.